CGX Energy Inc. (OYL) ("CGX") and Frontera Energy Corporation (FEC) ("Frontera"), joint venture partners (the "Joint Venture") in the Petroleum Prospecting License for the Corentyne block offshore Guyana, announce that the parties have agreed to (i) extend the maturity date of the previously announced US$19 million convertible loan to CGX dated May 28, 2021, as amended (the "Loan Agreement") to November 30, 2022; and (ii) amend the previously announced amended Joint Operating Agreement dated July 21, 2022 (the "JOA Amendment") to extend the outside date by which the conditions precedent to such agreement must be fulfilled to November 30, 2022, as the Joint Venture continues to await the satisfaction of all conditions precedent. The parties entered into the JOA Amendment to, amongst other matters, increase Frontera's participating interest in the Corentyne block in exchange for Frontera providing certain funding.
The transactions described herein between Frontera and CGX are related party transactions under Multilateral Instrument 61-101 but are exempt from the obligations to obtain a formal valuation and approval from a minority of shareholders. Nevertheless, CGX obtained a formal valuation for the Corentyne block in connection with the JOA Amendment, in accordance with TSX Venture Exchange requirements. The material change report filed by CGX in connection with a news release issued on July 22, 2022 contains the required disclosure regarding such exemptions and the formal valuation for the Corentyne block obtained by CGX.
